In the underlying case, natural persons were the sole shareholders and managing directors of companies (GmbH or UG). Some contractors entered into contracts with these companies for the provision of services. In two cases, this involved nursing services in the inpatient area of a hospital, and in the third case, a consulting activity. The activities were actually provided exclusively by the respective sole shareholder-managing director. In all cases, the German Federal Pension Insurance Fund (Deutsche Rentenversicherung Bund) established compulsory insurance based on employment.

The Federal Social Court confirmed this decision after an overall assessment of the factual circumstances of the activity and affirmed the existence of dependent employment. The fact that contracts were concluded between the clients and a limited company does not change this. To the extent that the 'self-employed' is integrated into the contractor's business and ultimately works without any entrepreneurial risk of his own, this is still a case of so-called pseudo-self-employment.